Nirmala Sitharaman Budget 2025 allows valuation of two self-occupied properties as Nil, offering tax relief to homeowners and easing compliance.


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In a significant change proposed in the 2025 Union Budget, the government has decided to allow the valuation of two self-occupied properties to be considered as Nil, instead of just one. This move aims to ease the tax burden on taxpayers who own multiple self-occupied properties. Previously, only one self-occupied property could be valued as Nil, with the second property being subject to tax as per its market value. Now, individuals owning two such properties will no longer face additional tax liabilities, offering relief to middle-class homeowners.

This change will particularly benefit those who have purchased a second home for various reasons such as investment or relocation. The move reflects the government’s commitment to making tax rules more taxpayer-friendly, simplifying compliance, and offering support to the middle class. This reform is expected to boost the real estate market by making homeownership more affordable for individuals.

Also Read: Key Takeaways from Union Budget 2025

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